Air India has set a target to save Rs. 600 crore annually. The national carrier’s market share increased from 16.6 per cent in August 2009 to 18.8 per cent in November 2009. The seat factor also increased to 74.1 per cent and was higher than all legacy carriers , while the airline’s passenger load improved by 10.1 per cent in April-November 2009 compared to the same period the previous year.
Mr. Arvind Jadhav, Chairman and Managing Director, Air India said that the airline had initiated measures to meet the situation facing the aviation industry. Cost initiatives on the operational restructuring include network restructuring and route rationalisation. He added that the airline expects a Rs. 378-crore saving in terms of costs during the winter schedule and Rs. 563 crore for the entire year. Air India has phased out 11 of its older aircraft and put 29 new aircraft into operation.
Air India’s Engineering has also achieved significant financial gains. Air India has assembled, tested and delivered CF6 80C2 Engine S/No: 695 296 belonging to a customer routed through Aerostar, earning approx. USD 300,000 in December 2009. Air India had recently entered into a strategic marketing alliance with Aerostar Asset Management, a Dubai based Company, to form “The A Team” for providing Engine repair management solutions to Operators in the Gulf and Middle East region to begin with. Recently, the Facility notched up two more landmarks accruing a total saving of approx. USD 650,000. Air India has comprehensive in-house maintenance facilities capable of performing Line maintenance, Major Maintenance, Engine Overhaul, Structure Repairs, Accessories and Components overhauls. In addition to its infrastructure, the Company has around 7,500 skilled engineers and technicians capable of undertaking maintenance of all aircraft and engines currently in its fleet.
Although the airline had some success in controlling costs in 2009, Mr. Jadhav said, “these efforts have to be sustained in 2010 to successfully turn around the airline.”

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